I have a situation where a fraudulent 1099c was issued solely to inflict financial pain on someone after refusing to sign a contract, and subsequently quitting, because of how they were treated after refusing to sign the contract.
There were never any contracts before the incident, no mention that any funds provided to the group was debt. Background is that the father was financing his son's venture, hoping the venture would make it big. That never happened and after this member quit, the father issued a 1099c to the quitting member out of spite. I am thinking the person should file (1) Form 3949-A online or by mail (2) report the 1099c in their taxes in turbotax.
Question: How does one file a fraudulent Form 1099-C, Cancellation of Debt, in Turbotax, and have it not reflected in the Income Totals for tax purposes. Please provide detail, if possible.
